Each of the following is a possible effect of budget deficit except
A) the deficit may affect the political equilibrium that determines the government's tax and spending levels.
B) the deficit may affect the level of real GDP in the short run.
C) the deficit may affect the level of real GDP in the long run.
D) the deficit may affect the natural rate of inflation in the long-run.
Correct Answer:
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Q44: The higher the debt-to-GDP ratio,
A) the less
Q45: The lower the debt-to-GDP ratio,
A) the less
Q46: The lower the debt-to-GDP ratio,
A) the less
Q47: The higher the debt-to-GDP ratio,
A) the more
Q48: A deficit is sustainable only if
A) the
Q50: The United States debt-to-GDP ratio reached its
Q51: The United States debt-to-GDP ratio reached its
Q52: The only three time periods in which
Q53: The almost doubling of the debt-to-GDP ration
Q54: Each of the following was a factor
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